AUDUSD Forecast – Australian Dollar Testing the Top of The Channel Again

AUDUSD Forecast Video for 13.01.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied significantly during the trading session on Thursday after the Consumer Price Index came out as anticipated. The numbers were exactly what Wall Street was calling for, so therefore people are starting to perhaps price in the idea that the Federal Reserve will only raise interest rates by 25 basis points next time. Whether or not that’s the case, I think still remains to be seen, because quite frankly there seems to be a bit of divergence as to what they are going to do next, as the central bank members themselves have been somewhat all over the place.

I suspect at this point in time the markets will probably calm down and try to figure out more of a longer-term move, but right now it’s obvious that we just don’t know what we want to do. The Australian dollar is pulling back from the top of the channel that it slammed into almost immediately after that CPI print, so that tells me that in the end, it’s likely that very little will have changed. With that in mind, I believe that we just continue to follow this channel, recognizing that the 0.70 level above could be significant resistance.

In that environment, I would anticipate that we have plenty of choppy behavior, but if we were to break above the 0.70 level, it would be a clear sign that the US dollar would start losing drastically to the Aussie dollar, as it would be a recapturing of a major round figure, and of course an area that a lot of people will be paying attention to.

For a look at all of today’s economic events, check out our economic calendar.